Date of This Version
January 2011
Abstract
In this paper stochastic dynamic programming is used to investigate habitat conservation by a multitude of landholders under uncertainty about the value of environmental services and irreversible development. We study land conversion under competition on the market for agricultural products when voluntary and mandatory measures are combined by the Government to induce adequate participation in a conservation plan. We analytically determine the impact of uncertainty and optimal policy conversion dynamics and discuss different policy scenarios on the basis of the relative long-run expected rate of deforestation. Finally, some numerical simulations are provided to illustrate our findings.
Recommended Citation
Di Corato, Luca; Moretto, Michele; and Vergalli, Sergio, "An Equilibrium Model of Habitat Conservation under Uncertainty and Irreversibility" (January 07, 2011). Fondazione Eni Enrico Mattei Working Papers. Paper 548.
https://services.bepress.com/feem/paper548